UAE Tech Firms Face Higher First-Year Tax Under R&D Capitalisation Rules
An accounting analysis published by Khaleej Times indicates that UAE technology companies could see their first-year corporate tax bill surge by over 128% depending on how R&D costs are classified. Under IAS 38 rules, capitalising development spending rather than expensing it immediately increases first-year taxable income. The report highlights the need for careful financial planning ahead of the UAE's planned 2026 R&D tax credit launch.













